Hess shareholders are set to vote on the deal at a meeting scheduled for May 28. ISS questioned the timing for the vote amid uncertainty around the deal due to an arbitration process filed by Exxon Mobil claiming a right of first refusal (ROFR) over the deal.
That arbitration case could drag on until 2025.
“Investors are presently unable to make an informed assessment of the likely timetable for the ROFR arbitration process,” ISS said.
Hess and Chevron did not immediately respond to requests for comment.
The ISS suggested that Chevron “may want to consider an incentive” to compensate Hess shareholders for a potential delay in the deal closing.
(Reporting by Sabrina Valle in Houston and Seher Dareen in Bengaluru; Editing by Krishna Chandra Eluri and Leslie Adler)
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